Indian Commodity Exchange overview:
- The exchange has recommenced trading operations w.e.f. August 28, 2017, after successfully complying with all SEBI mandated norms–prescribed for the commodity exchanges, and implementing world-class technology and risk management systems in Diamond Futures Contracts, which has highly impacted the Indian Commodity Exchange Share Value.
- The Company has also launched a Steel Long Futures contract on August 28, 2018.
- Further, subsequent to the amalgamation of NMCE vide NCLT approval, all the futures contracts traded at erstwhile NMCE were made available for trading at ICEX platform w.e.f September 24, 2018
- The company has also obtained approval from SEBI to facilitate transactions in the Mutual Fund scheme on the platform.
- As per SEBI requirement and in compliance with the erstwhile SECC Regulations, 2012, the Exchange has outsourced its services with respect to the clearing, settlement, deliveries, risk management services and any other applicable post-trade services required under the SECC Regulations to Metropolitan Clearing Corporation of India Limited (“MCCIL”), with effect from October 1, 2018.
- Technology plays the key role in Exchange business and accordingly the exchange has tied up with leading technology provider Millennium IT, subsidiary of London Stock Exchange Group whose systems are used by exchange businesses around the world providing advanced surveillance and risk management features at par with global best practices.
- SEBI has taken various steps to boost the commodity derivative market. In a major decision to strengthen the commodity market, SEBI permitted mutual funds to participate in commodity futures along with PMS. It enabled mutual funds and portfolio managers to participate in the Agri and non-Agri commodity derivatives segments (CDS). Earlier, Alternative Investment Funds (AIFs) were allowed to trade in commodities futures.
- Notable policy initiatives have been allowing commodity options, permitting mutual funds to participate in the commodity derivative markets, allowing foreign entities to hedge their exposure on the commodity in Indian commodity exchanges and allowing the introduction of commodity indices trade. SEBI has permitted ICEX to launch Mutual Fund distribution, using the Exchange infrastructure and the Exchange will start this segment during the current financial year.
- Trading member: A trading member has rights to trade on its own account as well as on account of their clients but cannot clear and settle trades itself and thereby must be affiliated with a trading cum clearing member or professional clearing member to settle trades.
- Self-clearing member: A self-clearing member can clear and settle transactions on their own account or its client account but cannot clear trades of other trading members or their clients.
- Trading cum clearing member: A trading cum clearing member can trade and settle transactions for self, its clients as well as other trading members and their clients.
- Professional clearing member: A professional clearing member cannot trade and can only settle trades executed by another member of the exchange.
Vision: Prices discovered on the Exchange to be recognized as benchmark prices for global trade.
Mission: To become the most preferred platform for price discovery and price hedging.